Issue - meetings

(a)       That the WAO Annual Audit Letter for 2016/17 be noted; and

(b)       That the positive comments on the approach to risks of financial governance be accepted.

Mike Whiteley of Wales Audit Office (WAO) presented the Annual Audit Letter which summarised the key messages arising from the statutory responsibilities of the Auditor General for Wales.

The letter dealt mainly with audit work on the accounts for 2016/17 and actions being taken to identify learning for both parties.  The implementation of earlier deadlines for publishing future accounts would be a challenge for all involved, and positive engagement between Council officers and WAO colleagues was helping to identify areas of early preparation.  Regular meetings were helping to monitor actions to resolve the issues identified on the Clwyd Pension Fund accounts for the previous year and there were no concerns by WAO at this stage.  The letter acknowledged the significant financial pressures faced by the Council and reflected positive work to mitigate some of that risk.  Work on the certification of grant claims and returns was nearing completion and would be reported to the next meeting of the Committee.

The Chief Executive expressed appreciation for the work by WAO.  He explained that cumulative issues had led to the matters identified on the Clwyd Pension Fund accounts for 2016/17 which should not reoccur.  In recognising the sensitivity of language used in the letter, he emphasised the clear distinction between the effective management of budgets under the Council’s control as opposed to the scale of the financial challenge caused by fiscal policies and the economic market.  Representations recently made to Welsh Government included an ‘open book’ approach to offer transparency of information to support the concerns on financial sustainability.

The Corporate Finance Manager referred to the positive comments by WAO on follow-up actions to address issues identified in the previous year which would also benefit work on the 2017/18 accounts process.

Sally Ellis asked about possible input by WAO on addressing the risks to financial sustainability.  The Chief Executive spoke about the independent role of the WAO in proving validation.  As mentioned earlier, he welcomed external validation and challenge of the Council’s risk statements which were evidenced.

Councillor Woolley echoed the concerns about financial sustainability in the event of no additional funding from Welsh Government.

RESOLVED:

(a)       That the WAO Annual Audit Letter for 2016/17 be noted; and

(b)       That the positive comments on the approach to risks of financial governance be accepted.